[gusopol3]

q.3) sounds more like a sales pitch than a question about basic economic literacy. Did I get that right?

[grania]

Question 3 a sales pitch? It might just be meant to demean people. How many times have financial advisors, bankers etc tried to tell you you're better off with mutual funds than you are being informed and making your own decisions?

This does look like a quiz for total economic illiterates. It doesn't even acknowledge that a person should know it's "more than $110" for number 1. In fact, it doesn't discern who actually knows something about how money works.

PS: Schools at every level through HS don't teach money management or economics any more.

[cynwoody]

q.3) sounds more like a sales pitch than a question about basic economic literacy. Did I get that right?

In an academic setting, which this was, Q3 is obviously meant to gauge knowledge of the need for diversification. In a commercial setting, hold on to your wallet:

• If you are truly acquisitive, invest in a balanced portfolio of individual stocks.
• If you are lazy or just starting out, use ETFs to accomplish your investment objectives.
• If you are a sheep yearning to be shorn, buy loaded mutual funds with high expense ratios and ignore that silly mumbo-jumbo about future and past results.